Americans Worry That Their Retirement Savings Aren’t Keeping Pace With Inflation | Global News Avenue

Inflation continues to weigh on the minds and wallets of retirees and those who are still years away from retirement.

Nearly 8 in 10 pre-retirees and a majority of current retirees say their savings and investments are not keeping up inflation A survey by the Society of Actuaries (SOA) found this to be a cause for concern. Respondents to the survey ranged in age from 45 to 80 years old.

Retirees are less likely to say financial conditions are “better than expected” in 2024 compared to 2021. While inflation has cooled from levels seen in the summer of 2022, prices for everything from rent to food remain high, eroding people’s incomes. purchasing power.

“While inflation has declined, many people are still affected by high housing and grocery prices,” said Anna Rappaport, chair of SOA’s Postretirement Needs and Risk Committee.

More than half of pre-retirees and nearly a third of current retirees said rising costs have impacted their food and daily expenses. Rising prices are causing some near-retirees — especially those making less than $100,000 a year — to adjust their incomes savings strategy.

Americans are dealing with financial issues while also struggling with caregiving responsibilities.

More than 1 in 10 pre-retirees currently care for or have cared for a family member who is not a child. if they need financial help When it comes to family members, 38% of pre-retirees and 27% of current retirees feel unprepared to deal with a medical emergency or health issue in a family member.

“The costs and obligations of care associated with a medical emergency or health issue can be very high,” Rappaport said.